Lockheed Martin and Raytheon had very similar transactions and accounts in their equity activities. Raytheon's major difference lay in the adjustment for exchange rate changes and the effects on some asset valuations, to which Lockheed Martin is not materially exposed. The shareholders' equity of Lockheed Martin was most effected by the company's net earnings (Lockheed 45), which is the final outcome of the income statement calculation (Lockheed 42). The company also declared dividends, which decreased retained earnings. As the table shows, the dividends paid by the company have been increasing each year both in total and in per-share amounts.
Stock was repurchased as part of an ongoing plan to do so (Lockheed 57). Management could be trying to preserve the voting power of individual shares as new stock is awarded as part of compensation plans. Repurchasing shares also maintains the companies chosen debt-to-equity ratio while these programs are in use.
The stock-based awards and ESOP activity reflects the amounts paid into for shares that are part of employee compensation programs. The exercise price of employee stock options are "of not less than 100% of the market value of the underlying stock on the date of grant" (Lockheed, 57). However, the amount paid
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